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McDonald’s Indian franchise drag government to court

  • Rate of GST on food services by restaurants had been slashed to 5% in 2017.
  • No ITC (Input Tax Credit) to be taken on raw material and other expenses.
  • It means No set off against sales.
  • National Anti-profiteering authority (NAA) had found Hardcastle Restaurant, franchise of McDonald’s, guilty.
  • This franchise had not passed lower rate benefit to customers.
  • This benefit was around ₹7.49 crore.
  • Several complaints had been lodged against restaurant.
  • The Hardcastle Restaurant Pvt Ltd quickly appealed against the decision.
  • On this appeal, Bombay high court provided relief to Hardcastle Restaurant.
  • Hardcastle, now has filed writ petition in the Gujrat High Court.
  • While the customer is relieved, it increased tax expense of restaurant.
  • It is being suggested by these businesses to provide option of paying higher tax with ITC.
  • They are now looking forward for final ruling.
Author: Niranjan Reddy

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